Crude has been the underdog since Covid-19 broke onto the scene in early March of 2020. We have seen historic contango, negative trading, inventories at the verge of 100% capacity. However, we have also seen refineries curtailing production and shutting down, crude breaking technical level after level, OPEC + committing to decreased outputs, a Texas winter weather creating supply concerns, and a slow steady recovery of crude as inventories are drawn down and production resumes. Crude has built a full head of steam and looks to be an unstoppable force and a surefire pick to rise to glory yet again for 2021. March Madness is known for its volatile emotional up and downs and surprise sleeper teams with unimaginable upsets. Will 2021 and a third European lockdown amid vaccine safety concerns be the sleeper to upset the rise of Crude?!
We are a mere 7 days into a new year, and have already seen the first oil rally in the markets. Many factors have played a role in the first rally of the new year. Oil has been tumultuous over the last 11 months but has seen some stability and positivity since Biden’s election win in November. Biden was confirmed by the senate to be the 46th President of the United States of America and he will have a democratic controlled House and Senate to put his plans into action.
Although Black Friday and Cyber Monday are behind us, most Americans still have a large portion of their holiday shopping to complete. In a year of turmoil and pandemic scammers have gotten very sly in their manipulative ways to steal gifts, money, and personal identity, especially in the new digital world we live in where online shopping for the holidays is expected to increase by 30%. Emails, text messages, and now curbside pickup are all ways to be scammed out of your holiday goods.
News of the Pfizer vaccine is spreading like wildfire around the world today. Covid-19 has killed more than 1.2 million people the world over. Today, Pfizer announced a vaccine that has a 90% effective rate with no serious safety concerns. If these numbers are to hold true, Pfizer’s new vaccine would hold up to the childhood disease vaccines like measles. Additionally, Pfizer says it expects to have 15 to 20 million vaccines ready in the US by year’s end provided the FDA issue emergency authorization later this month. They also predict to have over 100 million doses ready worldwide.
Oil and gas explorations remain sluggish and failing to rebound as expected. At $40+ a barrel and positive market indicator would historically promote conditions for the industry to recover, however there has been no indication of a recovery to speak of. The new normal seems to be a slim, budget conscious, and efficient industry soup to nuts.
Covid-19 is still having a lasting impact, gripping the US economy some 5 months after it reared its ugly head. This time it is targeting the US housing market. With 44 million Americans still unemployed, many unable to pay rent and utilities, and temporary eviction bans set to lift, the US faces an eviction catastrophe the likes of which we have never seen.
Unless you’ve been living under a rock since February 2020, you’ve probably noticed the economic impact worldwide of the novel corona-virus, Covid-19. There has been little to no positive news even as Governors ease restrictions and states/counties move from red to yellow to green phases, until the May 2020 unemployment rates were released days ago. According to the Bureau of Labor Statistics, May saw an increase of 2.5 million jobs and an unemployment rate of 13.3%, down from April’s 14.7%. This number came as a overwhelmingly positive shock as most experts had predicted it to increase to near 20%, the worst figure since the Great Depression.
Economic busts are no stranger to the energy industry. Workers have become familiar to the roller coaster ups and downs of employment in the energy sector, but is 2020 the year of a paradigm shift or is it simply another economic shock that shall soon pass?
April 20, 2020 will go down in history as the first-ever negative trading day for WTI Crude as stocks plunged 321%, saw -$40.32 a barrel, and created a historic “super contango.”